Forex trading is something anyone can do with the right tools at their disposal. Traders no longer need to work for big financial institutions; you can trade on the foreign currency markets 24/7 from the comfort of your own home. Most people start forex trading because they want to make money, but to make a profit, you need the right technology. Here is a quick guide to get you started.
Trading platforms such as MT4 make forex trading very easy. When you create an account with an online forex broker, you will be given access to a trading platform. MetaTrader4 is the most popular one, but there are others, including MT5 and Trading Station.
Currency trading platforms are typically web-based, app-based, and/or downloadable. MT4 is used by more people than any other, but some brokers offer their own bespoke trading platforms. Look for a platform that is easy to use, easy to install (if applicable), and comes with a selection of analytical tools to boost your profits.
Forex Trading Apps
Applications or ‘apps’ have revolutionized the tech world in the last decade. We now have an app for everything, from weight loss to weather forecasting. Naturally, forex traders have their own apps, too.
All the top forex brokers such as CMTrading, easyMarkets, and IG offer their services via mobile applications. This means you can open and close positions while on the move. But there are other useful apps worth considering.
The Bloomberg Business app is handy to have. It gives traders access to the latest market news. You can track currency prices, ETFs, stocks, and mutual funds from your smartphone. If you want to stay in the loop about the latest currency prices, this app is a must-have.
Other useful apps for forex traders include Trade Interceptor and NetDania Forex and Stocks.
Forex trading is always challenging, but there are a number of tech tools that boost the odds in your favor. Many trading tools are bundled with popular trading platforms such as MT4, such as economic calendars and links to news websites that specialize in financial news. These are usually free.
Other technical indicators no forex trader should be without include a pip calculator tool, currency correlation tool, spread comparison tool, time zone converter, volatility calculator, and trading journal.
Fast Internet Connection
Don’t underestimate the importance of a fast internet connection. Forex day trading relies on fast download and upload speeds. You need to download market data quickly and a good upload speed to place orders. It’s hard to make money trading forex if your internet keeps timing out.
All serious forex traders operate in an area with super-fast internet connection. It isn’t unusual for serious traders to move house so they can live right next to a broadband exchange.
Imagine how upset you would be if your power died just as you were about to make a killing on the currency market? Always have a backup UPS to take over in the event of a power outage.
With these tech tools, you are ready to start forex trading immediately!